The weighted average effective interest rate on new corporate loans in Montenegro reached 5.56% in August, increasing by 0.84 percentage points compared with a year earlier and by 0.39 percentage points from July. The nominal interest rate on newly issued corporate loans also increased, reaching 5.16%, with rises recorded both year on year and month on month.
The higher cost of new borrowing contrasts with the trend across banks’ existing loan portfolios. The weighted average effective interest rate on all outstanding loans stood at 6.13%, down 0.15 percentage points from August 2025.
Meanwhile, the banking system continued to record growth in deposits and liquidity. Total deposits reached €6.49 billion at the end of August, representing a 6.37% annual increase. Liquid assets amounted to €1.61 billion, rising by 10.15% in one month.
The loan-to-deposit ratio was 0.91, with deposits remaining above the total volume of loans. The difference between the average rate on outstanding credit and the rate charged on new corporate lending reflects an increase in the cost of fresh financing, despite the banking sector’s deposit base and liquidity levels.
